【Ferro-alloys.com】: The Tasmanian Government has struck an in-principle 12-month power agreement to safeguard the immediate future of Rio Tinto’s Bell Bay Aluminium smelter while longer-term energy and investment arrangements are negotiated.

Tasmanian Premier Jeremy Rockliff said the deal provides breathing space to ensure one of Tasmania’s largest industrial employers continues operating while state and federal authorities work towards a more sustainable future for the facility.

“The smelter is a cornerstone of Tasmania’s economy, directly employing over 550 people and supporting hundreds more through a supply chain of almost 300 local businesses,” Rockliff said.

“We are doing all we can to make sure the business continues to have a strong future in the state. It is important all governments continue to work together with Rio Tinto to secure the future of Bell Bay Aluminium, one of Australia’s greenest smelters.”

The interim arrangement between Hydro Tasmania and Bell Bay Aluminium – owned by Rio Tinto – follows months of negotiations amid rising pressure to maintain affordable industrial energy supply in Tasmania. Hydro will continue supplying electricity under commercial terms while a long-term deal is developed in collaboration with the Commonwealth.

Tasmanian Energy and Renewables Minister Nick Duigan thanked Rio Tinto and Hydro Tasmania for working together on an immediate solution, saying it underscored the smelter’s importance to the state.

“The smelter injects $700 million of economic activity into Tasmania annually, and we are committed to its future,” Duigan said.

“Hydro Tasmania has been engaged in good faith negotiations with Bell Bay Aluminium, and I expect a competitive, commercial energy price consistent with its Charter obligations to put Tasmanian jobs and the economy first.”

Duigan said federal support would be vital to ensure the smelter’s long-term viability.

“As we have seen across the country, Federal Government support is necessary to provide the smelter with a sustainable operating trajectory when coupled with a new long-term energy arrangement with Hydro Tasmania,” he said.

Established in 1955, Bell Bay Aluminium was the first smelter built in the Southern Hemisphere and remains one of the most energy-efficient globally.

• [Editor:Alakay]